The price rises, put forward by Great Yarmouth and Gorleston Taxi Association, were approved this week by members of the borough council's licensing committee.

It means passengers who have to rely on taxis, from young clubbers to pensioners and the disabled, will have to dig deeper in their pockets.

Taxi association chairman Cliff Bennett said putting the increase on the starting price was fairer than raising the mileage rate.

He said: “There has been a big rise in fuel costs and this is just keeping up with the increased costs we have to bear. A lot of taxi drivers are feeling the pinch and near enough running at a loss, costs are really going up and this is needed to take the sting out of the fuel rises.

“I'm sure passengers would rather pay an extra 40p than £2 to £3 travelling to Hopton or Caister, which is what would happen if the mileage charge was increased.”

As a result of the proposed increase, fees over a mile will rise from £3.16 to £3.56 for the day rate, £3.94 to £4.34 at night, £3.35 to £3.75 on Sunday and £4.76 to £5.76 - an even bigger rise - at Christmas and New Year.

The last fare rise was agreed two years ago, but operators warned they may have to seek further increases if pump prices keep going up.

Michael Yaxley, who runs Bradwell-based Yaxley Freight and Taxi, told the Mercury he had noticed a steep downturn in business since Christmas. He said: “Operators cannot afford to be greedy with the increase and have to strike a balance, but look at how much fuel costs. We are paying around £1.20 for a litre of diesel.

“There has been a 30pc increase in fuel costs in the last year and if that trend continues we may have to come back in the next six months and seek another increase.”

The increase was unanimously supported by members of the licensing committee on Wednesday night.

There is still time for the public to make their views known on the increases, and views should be sent in writing by May 9 to The Licensing Section, Great Yarmouth Borough Council, Town Hall, Hall Plain, Great Yarmouth NR30 2QF or email licensing@great-yarmouth.gov.uk.